Significant cuts to school budgets predicted
The Institute of Fiscal Studies (IFS) based its report on the Conservative, Labour and Liberal Democrats parties' spending pledges, and is understood to have found a real-terms reduction of seven per cent per child by the end of the next government.
Despite a well protected school spending budget under the present parliament, the IFS believe that increasing pupil numbers and staff wages will contribute to the possible funding cuts, while teachers' pensions and national insurance contributions could also be effective. The report suggested that 'There are likely to be some significant cost pressures on schools’ spending over the next parliament. First, overall pupil numbers are expected to grow by 7 per cent between 2016 and 2020. Second, the cost of employing staff for schools is likely to rise'.
Luke Sibieta, Programme Director at the IFS and author of the report, commented: “School spending in England has been one of the most protected areas of public spending under the coalition government. However, it is likely to be squeezed harder in the next parliament. Schools face significant cost pressures from rising pupil numbers, increased employer pension and National Insurance contributions and potential upward pressure on wages.”
He added, “Plans announced by the Conservatives, Labour and the Liberal Democrats could all imply school spending per pupil in England falling by around 7% in real-terms over the next parliament, or by up to 12% if we account for some of the specific cost increases schools are likely to face in the next few years.”
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